Few startups are applying for government grants – despite a need for cash

It’s especially surprising when more than half of startups feel they need additional funding within the next 12 months just to keep operating.

Compare the 33 percent who had applied for grants that with the more than 70 percent who tip their own money into their venture and 32.6 percent of those who had successfully gone through private equity.

According to Wulff, there’s a simple reason why startups aren’t applying for what could be free money.

“The top response was that [applying for grants was] time-consuming,” said Wulff. “We know startups and one of the things they have an issue with is that they have no time.”

“[Also, startups] don’t want to get stuck in the ambiguity of not knowing whether they are going to get the money.”